St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-03-11
A GIGANTIC SCHEME.
The Baltimore & Ohio Deal Only a Factor
in the Biggest Railroad Plan
Known.
The Project is to Form a Syndicate Which
Will be National in Its
Extent,
And Bring Under One Management a
Vast Network OF Trunk
Lines.
The Dubuque ~ Sioux City Road--
Rate Cutting Still in
Progress.

Rate Cutting Still in
! Progress.
BALTIMORE, March 1O.-Robert Garrett
this afternoon virtually admitted to prom
inent Baltimore man that there was con-
siderable truth in The newspaper talk of a
big railroad deal. He would give no def
mite idea of the particulars of tie scheme.
| but from his remarks the inference was
| drawn that the Baltimore & Ohio railroad
has become factor in a syndicate that is
to control something like National rail-
way, reaching from Canada to the Gulf of
Mexico, and probably from New York to
that the biggest railroad deal on record is
about to be made, and that the pass
aye of the interstate commerce bill
hurried the affair to settlement.
Mr. Sully has been active in arranging
the details of the scheme. and he is the
only one positively known to be connected
with it, but complete chain is believed to
have been formed OF companies operating
connecting roads running the entire length
of the North American continent. Opin-
ions differ as to whether single share of
Baltimore 6 Ohio stock has been or will
be transferred, but the belief is gaining
ground that the deal involves not only the
road itself, but also its telegraph, express
and sleeping-car interests. The
| Widest SORT OF TALK
is freely indulged in, but no actual fact can
be obtained from any one in position to
know anything aboutit. Many are inclined
to believe that the stock, II, 900 shares, held
by the Johns Hopkins trustees. or at least a
considerable portion of it, has been placed
under the control of the new syndicate
but the 81, 600 shares held by the city of
Baltimore cannot be touched without a
special act of the city council. The 80. 900
shares left in trust by tine late John W.
Garrett can be disposed of, as the will did
not forbid sale, but simply advised that it
be held in trust for twenty years
so that controlling interest might be Sc
cured if advantageous terms were offered
Mr.. Garrett to-day told gentleman at the
Merchants club that he might rest assured
that whatever was done would be for the
best interests of Baltimore. but further in
formation he could not give just now.
From this it was inferred that the scheme
was not fully conSummated, and that
IMPORTANT DEVELOPMLNTS
might be expected in the near future. One
of the directors of the Reading railroad, re-
SosiuIbiS pliC SlCot IQiiiOdu ucdi. Stlu
Ihave no doubt that President Garrett would
like to dispose of some of his Baltimore j.
Ohio railroad stock at good round sum, but
you can rest assured that the Philadelphia s.
Reading Railroad company cannot be used to
pull the chestnut out of the fire in any such
combination as has been reported. The preSi-
dent OF the Baltimore IL Ohio has undertaken
great task in the attempt to get his railroad
line to New York, and has already loaded the
company with good deal of debt. He can
get to New York, but not upon his own terms
Which means to cut rates as he chooses.
BRICE TALKS.
New YORK. March 10.-Calvin S. Brice.
one of the Richmond terminal directors,
and also supposed to be in the syndicate to
which President Garrett, of the Baltimore
" Ohio has offered the option of purchase,
said after the meeting of the Richmond
Terminal directors to-day:
We have not decided yet whether we shall
accept the offered option. l greatly doubt if
MIR. Garrett would SELL except on condition
that the Baltimore & Ohio and the Richmond
Terminal be consolidated, making q 5000
mile trunk line. AS a Richmond Terminal
director would like to see this done, pro-
vided the terms Of purchase are fair, that is,
it the price is low. So far / have not made
up my mind on that point. l think none of
the directors have as yet. We received the
proposition IN its present form only yester-
udy anu are llOl utClu0Q Ou IL.
Another Richmond Terminal director said
that it was not likely that the company would
accept Mr., Garrett's offer, but he thought
the syndicate in which, he said, Messrs. Brice,
Sully and Thomas are interested, would do
so. This director said the terms were Sc, ,OOO,-
600 down and $l0,000,000 in one year, stock
for that amount to be held as security. The
Richmond and Dauville people, he said, con-
slider the figures altogether too high.
The New York Tribune of tomorrow
will say: The negotiations for the transfer
of the control of the Baltimore & Ohio
railroad to New York syndicate have not
yet been conducted to successful issue. 1t
is reported that
THE OPTION OBTAINED
from President Garrett by Alfred Sully ex-
pired yesterday, and that Mr.. Sully was I'M
able to raise money to meet the first pay
ment. While the exact terms of the con-
tract are not known, it has been published
that $1,000, 600 of the SIG, OOO 900 required
for the purchase Of $4,000 shares at 5000
was to be paid in cash. The stock, how
ever. was to be placed in trust until the pay
ment OF the remaining $1,000
600, on which a years time
had been given, had been completed. 1t ap-
pears that of the cash payment an INSTALL
ment Of $1,000. 600 was to be paid yester-
udy. HO oull w do uOI ScllI W DdlUllllOI6,
but in place OF the money a request for an
extension of the privilege was forwarded.
1t is not known that any reply to the mes
sage was received. The most plausible ex-
cuse for the failure to exercise the option is
the statement that the purchasing syndicate
desired longer time for an investigation of
the condition of the Baltimore & Ohio COM
pany. The assets and liabilities of the
company were stated in round figures when
the privilege on the stock was obtained,
and many persons who had expressed
willingness to join the undertaking were
reluctant on calm reflection, to complete
the bargain without
AN EXPERT EXAMINATION
Of the affairs OF the company. A men,
ber of the proposed syndicate expressed the
general sentiment in about these words:
I'VE would have no objection about enter
ing upon this agreement, but as business
men of ordinary prudence and capacity we
must insist upon a fuller and more exact
report of the value of the property we are
buying. 1t must not be forgotten that the
Baltimore & Ohio has several important
matters on its hands-in railroad questions
with the Pennsylvania railroad, in telegraph
matters with the Western Union company
and in express matters with all the large
advisable. under the circumstances,
that persons buying control of the
company should ascertain, first of
all, whether these disputes could be
easily adjusted. l think the present fail
ure has been due chiefly to the premature
announcement of the plan before it was
learned whether these important disputes
could be amicably arranged" An adj
journed meeting of the Richmond Terminal
company was held Yesterday The option